Team Blitz India
New Delhi: The Insolvency and Bankruptcy Code (IBC), introduced by the PM Modi-led government, is a landmark reform that introduced a legal unified framework for resolving issues of financially-stressed companies, said Finance Minister Nirmala Sitharaman.
Sitharaman, in a post on social media platform X, added that the code has played an important role in resolving insolvencies.
“The code has brought a paradigm shift in the debtor-creditor relationship and provides a streamlined, one-stop solution for resolving insolvencies,” has added in the post.
The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. The Insolvency and Bankruptcy Code, 2015 was introduced in Lok Sabha in December 2015. It was passed by Lok Sabha on 5 May 2016.
Citing the success of the IBC, she mentioned that World Bank, in its 2019 report, noted that India’s 2016 insolvency regime reform increased creditor recovery rates from 26.5 to 71.6 cents on the dollar, making India ‘by far the best performer in South Asia’ and surpassing even the average recovery rate of Organisation for Economic Co-operation and Development (OECD) high-income economies.
